Manufacturing Agreement Term Sheet

1 year with annual automatic renewal; Provided that the buyer can terminate in writing with a period of 60 days without justification and that the seller can terminate in writing, without justification, a period of 180 days. Many years ago, I had one of my firm`s international manufacturing lawyers draw up a one-sided, ten-fold list of what I believed to be the essence of a manufacturing roadmap. My intention with this term sheet was not to reach an agreement between the American company and the Vietnamese manufacturer, but to reach an agreement sufficient to make the chances of them concluding the agreement overwhelming. I can`t find this term sheet anymore. It is very important to have a sealed manufacturing agreement to settle the relationship with your factory. Use our questions to prepare for contract negotiation, so you have your own business perspective on everything that will appear in the ongoing conversation. One of our experts will then spend an hour advising you on best practices and areas to consider. Yes, during the term of the contract, as long as the seller can meet the capacity and quality requirements; provided that the buyer can manufacture his own devices at his own production site. SELLER to keep buyer harmless for: (1) all acts and omissions of Seller and its employees; (2) defects in workmanship and materials; (3) infringements, representatives and warranties of the buyer; and (4) damage to tools caused by seller.

The seller may not assign the obligations arising from the contract (including with regard to a change of control) without the agreement of the buyer. The buyer can withdraw freely. It has agreed and is set out in the timetable. The seller cannot increase prices without the buyer`s consent. All prices expressed in US dollars and payments in US dollars. The parties meet every six months and meet to verify prices and determine whether a price change is warranted. Buyer shall have the right to conduct unannounced quality assurance inspections of establishments and Seller`s accounts and records at least twice a year to ensure compliance with this Agreement. However, I will say that the following term sheet briefly presents most of the concepts that most companies should deal with when outsourcing their production. Note that some of the points of this Term Sheet have already been agreed/resolved in a previously signed development agreement between the parties.

Also note that the version of this model, which was given to the Chinese manufacturer (in accordance with the recommendation of my company), was in both Chinese and English. We recommend it to reduce the likelihood of misunderstandings. I just spoke on the phone with a customer who asked me to provide him with a “Term Sheet” model for the purchase of products by a Vietnamese manufacturer…